Removing charges can INCREASE your profitability...
Retention and Loyalty
Customers are attracted to your purpose. Research shows that true brand loyalty comes from an emotional attachment, often born from the resonance they feel toward a brand's choices. On average, companies lose 13% of customers every 5 years . In a market as competitive as coffee shops, it is essential to make choices that can grow your customer base. This is particularly key in growth segments which are forecast to increase sales in the future. Plant milk is a great example of this; we have already shown the rate at which consumers are turning toward it. By ending plant milk charges, you can capitalise on a large volume of consumers who are actively looking to support brands who understand this need.
Removing charges need not result in lost profit. Combining the rapid uptake of plant milk with a majority of coffee shops still charging, it is a fair assumption that sales of plant milk will increase if you are an early adopter of ending charges. Below is a simple example we've put together to demonstrate the potential earnings after 1 year of removing charges.
Using a base of 100 sales per month and assuming just 4% higher sales of dairy-free vs. dairy after charges are removed, profitability is matched after 4 months and ultimately returns 14% higher year-end profitability than if charges were maintained.
We know each business is different but believe strongly that ending charges will mean more loyal customers and higher profit over time.
Assumptions: Average price of drink = £2.50; plant milk charge = 40p per drink; plant milk price = £1.80 - Oatly Barista 1L (Tesco); average milk per drink = 100ml; 10% waste per 1L; 'with charge' sales growth rate = 6% (UK coffee shop growth rate 5.8% (Project Cafe, 2018); 'no charge' sales growth rate = 10%. Full calculations available here.
The F4DF Charter...abolished charges already? Shout about it!
What is the F4DF Charter?
The Charter is a public commitment to say you aren't charging extra for plant milks. We want to promote and support retailers who have made this decision. When signing the charter you are agreeing to the following principles:
Plant Milk Is Free
No extra charges for dairy alternatives at your venue(s)
Believe In Our Purpose
Support sustainability in the retail sector
Advocate For Further Change
Support the progressive reduction of global dairy consumption
What happens when I sign?
After that warm and fuzzy feeling subsides, we will...
Provide a copy of the F4DF charter, posters, stickers and other physical assets for you to use in your store
Pop your logo and info to our site as an AWESOME member of the team supporting change
Promote your effort on our social channels
Ask for your views when shaping the F4DF campaign agenda to make more meaningful change
I can probably reduce the charge but I still think I need to apply a charge based on the volume I sell. Can you help?
YES! Please read the section below on F4DF Delivery and contact us using the form below. We really want to chat with you about how we can get you to become F4DF!
How can I sign up?
Contact us using the form below and we will be in touch!!
'F4DF Delivery' - giving independents a route to become F4DF...
How does it work?
Place Your Weekly Order
Provide us with your weekly plant milk order, paying a pre-agreed rate based on type & volume
We Buy Your Plant Milk
We purchase high-quality plant milk in bulk for a network of local coffee shops
We Deliver To Your Door
We deliver your plant-milk order to your premises on a weekly basis
Free Plant Milk For Customers
Your customers can enjoy high quality plant milk with their drinks, free of charge!
Providing plant-milk to customers free of charge is the only requirement when signing up
The operation runs on a not-for-profit basis, with the simple aim of removing extra charges
How can you charge me less per litre than retail?
We need to order in bulk, and so this will only be available in areas that have enough sign-ups for us to be able to offer a competitive rate to everyone. Together though, we can change!!
I like the idea but can I discuss it more with you?
YES! We want to engage with coffee shops to understand their needs. Please contact us below and we'll be in touch!
*Please note that this is a concept only, and is subject to further research and consultation*